Written answers

Tuesday, 8 July 2025

Department of Environment, Community and Local Government

Energy Prices

Photo of Richard O'DonoghueRichard O'Donoghue (Limerick County, Independent Ireland Party)
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223. To ask the Minister for Environment, Community and Local Government if his Department has undertaken any cost benefit or an electricity price impact analysis regarding the warning raised by EirGrid that very significant levels of renewable power will need to be spilled under the current Climate Action Plan targets (details supplied); if, under the current Renewable Electricity Support Scheme (RESS) terms, renewable energy generators will continue to be paid even when their output is curtailed or spilled, with those costs passed on to electricity consumers; and if he will make a statement on the matter. [37573/25]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal East, Fianna Fail)
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The Programme Government 2025 reaffirms the commitment to meeting 80% of Ireland’s electricity generation from renewable sources as set out in the Climate Action Plan. In order to deliver on this, a flexible power system is critical to align our electricity use with periods of plentiful, low-cost renewable generation and to reduce periods where the output of renewable energy sources is reduced or dispatched down.

Under the Renewable Electricity Support Scheme, an Unrealised Available Energy Compensation (UAEC) mechanism has been included in the Terms and Conditions since the third auction for projects which cannot normally access compensation through the electricity market. UAEC compensates successful RESS projects for system wide curtailment or where there is a surplus of renewables which is beyond a project's control. It does not compensate for electricity network constraints which remain an important locational signal.

UAEC helps protect consumers by offering support to successful RESS applicants only in periods where curtailment or oversupply has happened, which would have otherwise been included in auction bid prices and paid for by consumers regardless of if curtailment or oversupply occurred.

Issues regarding the development of the national electricity grid rest with EirGrid and ESB Networks. In this regard, constraint payments include the dispatch-down of wind and solar generation for localised network reasons. Managing dispatch down is a priority as we seek to integrate more renewable electricity onto the grid. As Transmission System Operator, EirGrid has responsibility for the development of the electricity transmission system and the management of dispatch down of renewables.

The CRU has recently published, for public consultation, their Draft Determination on Electricity Price Review 6 which sets out the envisaged €18 billion investment they are proposing to approve in the electricity grid out to 2030. This level of investment is warranted, represents a step change in investment in our electricity grid infrastructure and one of the biggest changes to the overall system in memory.

My Department has established the Accelerating Renewable Electricity Taskforce to accelerate and increase the deployment of onshore renewable electricity generation and support flexible network infrastructure to ensure that indigenous renewable power reaches our homes and businesses.

Furthermore, my Department has established the National Energy Affordability Taskforce which aims to identify, assess and implement measures that will enhance energy affordability for households and businesses. A key output of this Taskforce will be to develop and publish an Energy Affordability Action Plan which will identify a comprehensive range of measures including demand-side solutions for households to allow them to adjust their energy demand and avail of low cost, or otherwise surplus renewable energy.

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